Little Truth to “Official” Government Economic Statistics

September 11, 2006 -

On July 25^th, in my E-Zine Issue #013, I mentioned that I thought the U.S. dollar was going to strengthen and that gold was going to fall. Since then the dollar has rallied for six straight weeks and reached six-week highs on August 8^th against most major world currencies, recouping all of its earlier losses against the yen. And back then I specifically mentioned that I believed gold would head below USD $600 an ounce. And yesterday, gold continued sharply retreating since my statement to about $592 an ounce. And I have strong reason to believe that it will possibly challenge the June lows of $570 an ounce and perhaps even head lower before sharply rebounding and heading much higher.

Before I continue as to how I can predict these things with a fair amount of confidence, let me discuss why the dollar hasn’t strengthened against the currency in Thailand even though it has strengthened significantly against most other Asian currencies. In Thailand, though the U.S. dollar has been making a strong run against the major currencies of the world in the last six weeks, it has barely strengthened at all against the Thai baht.

Since the topic of this discussion is the fact that governments consistently lie and can not be trusted, let’s take a quick look at possible reasons why the baht has remained strong against the dollar despite the dollar’s strength against other currencies. Read more …

1 comment September 11th, 2006

Gold’s Speculative Stigma is Unwarranted

September 11, 2006 -

Gold has a non-deserved reputation as a speculative investment. True it is highly volatile and will most likely be even more volatile now that Gold ETFs are open to hedge funds. However volatile is not to be confused with speculative. They are not the same. In fact it is volatility that allows people to build wealth. Think about it. If a stock increases by 40% in price in one year, by nature the price is volatile. If a stock increases by 6% a year, be definition, it is a non-volatile stock. So is it possible to ever grow considerable wealth without volatility?

PRECIOUS METALS

I’m not really sure why but large investment firms by and large seem to ignore year after year precious metals such as gold, silver, palladium, zinc and others. However, in turbulent times, this asset class is one of the most valuable. It’s not that the news doesn’t report on it. In fact, every night, in financial news reports, the closing price of commodities including gold is reported. However, at the end of the day, very few people ever seem to benefit from investing in the stocks that benefit the most during precious metal bull markets.

The average person does not understand the upside of investing in metals because it has never properly been explained to them.

Many myths cloud the truth about metals as an investment vehicle. Several of the most widespread myths include the following: Read more …

1 comment September 11th, 2006